33. When investors speak of \"bubbles\" they are referring to situations where A

Question

33. When investors speak of "bubbles" they are referring to situations where A B. C. D. Frantic investors have caused the stock price to rise to unsustainable levels The process of blowing bubbles to distract other traders When the entire market moves in the same direction driven by a market risk Federal interest rates have been driven up by a devaluation in the dollar 34. The differences between long-term and short-term interest rates A B. C. D. Is reflective of what investors feel about the overall market Is reflective of what investors expect to happen to short-term rates in the future Are very seldom significant enough to have any impact on the market Are caused by solar storms 35. Over the last thirty years the US (and world) economy has experienced two major market "bubbles casting doubt as to whether we have an efficient market. Those "bubbles" have been related to: A Grossly overpriced technological stocks at the end of millennium and the sub-prime mortgage crisis in B. Infusion of huge amounts of capital from China in the early part of the millennium and the precarious C. The switch to a common currency by the European Union in 1990 and the 9/11/01 attacks the middle of the last decade. nature of the Greek economy in The supply side economics theory of the Reagan administration and fears of global warming exacerbated during the GW Bush administration. D. Every company must produce capital to survive. Initially stock is sold. Later, the company may borrow funds and finally, all companies hope to produce most of their capital through operating profits. a company chooses offer bonds for investment, which of these three categories is being employed? A. Stock issuance because bonds are simply another form of investment B. Borrowing C. Operating profits because the bond payment is tax deductible D. Not one of the three because dividend payments are issued from Retained Earnings 37. Ifyou could construct a balance sheet of all public held manufacturing companies in the United States. What would the capital structure look like? When considering debt, in this case, consider only Long-Term liabilities A. The ratio of debt/equity would greater than 2:1 but less than 3:1 B. The ratio of debt/equity would be less than S:1 but greater than 0 C. The ratio of debt/equity would be less than zero because of the large deficits suffered by so many firms in the last two stock market bubbles. D. The ratio of debt to equity would greater than 5:1 but less than 1:1 38. In the event of the bankruptcy of a corporation who has first claim to the remaining assets? A. Preferred stock holders with preferential claim rights B. Longest tenured common stock holders C. Lending institutions; to the limit of the company's related indebtedness D. The trustees of the retirement plan and the related participants

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

33)

A bubble is a situation which takes place in stock markets where market participants drive stock prices above their value to unsustainable levels in order to earn profits

So, option A is the correct option

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.